HOUSTON - Bio-Path Holdings, Inc. (NASDAQ:BPTH), a biotechnology firm, announced today it has entered into a definitive agreement for a private placement priced at-the-market under Nasdaq rules. The transaction involves the sale of 1,809,955 shares of common stock and equivalent securities, along with series A and B warrants to purchase additional shares, generating gross proceeds of about $4 million.
The offering, set to close tomorrow, includes series A warrants exercisable immediately upon issuance at $2.00 per share, expiring five years from the date of issuance, and short-term series B warrants with the same exercise price and a twenty-four-month expiry. The purchase price for each share and accompanying warrants is $2.21.
H.C. Wainwright & Co. serves as the exclusive placement agent for the offering. The proceeds, before fees and expenses, are earmarked for working capital and general corporate purposes.
The securities in this offering, which include shares of common stock and warrants, have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and are being offered under an exemption from the registration requirements. The company has committed to filing a resale registration statement for the securities sold in this placement.
Bio-Path utilizes its proprietary DNAbilize® technology to develop targeted nucleic acid cancer drugs. Its lead product candidate, prexigebersen, is currently in a Phase 2 study for blood cancers, with a modified version in a Phase 1/1b study for solid tumors.
Its second product, BP1002, is being evaluated for blood cancers and solid tumors, including lymphoma and acute myeloid leukemia. Moreover, an IND application is expected for BP1003, a novel inhibitor of STAT3.
This press release contains forward-looking statements regarding the offering's closing and the intended use of proceeds, which are subject to customary closing conditions and uncertainties. The information is based on a press release statement from Bio-Path Holdings, Inc.
In other recent news, Bio-Path Holdings has been making notable strides in the biotechnology sector. The company recently presented promising interim Phase 2 data at the American Society of Clinical Oncology meeting, showcasing a potential breakthrough in Acute Myeloid Leukemia (AML) treatment with a combination therapy. The therapy, which combines prexigebersen with decitabine and venetoclax, demonstrated encouraging results, leading to a maintained Buy rating and a $20.00 stock price target from Roth/MKM.
In addition to clinical developments, Bio-Path Holdings reported an improved financial performance for the first quarter of 2024. The company reported a net loss of $3.2 million, a significant decrease from the $5.3 million loss reported for the same period last year. This improvement was primarily due to lower manufacturing costs, which reduced R&D expenses, despite a slight increase in G&A expenses due to legal fees.
Furthermore, Bio-Path has expanded its patent portfolio, with new patents issued in Mexico, Australia, and Japan, reflecting the company's ongoing commitment to innovation. The company's progress in its clinical trials and its improved financial performance are important recent developments that have drawn the attention of investors and industry experts alike. Despite reporting a net loss, the company has managed to strengthen its balance sheet through recent funding, underscoring its potential for future growth.
InvestingPro Insights
As Bio-Path Holdings, Inc. (NASDAQ:BPTH) navigates through its latest private placement, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Bio-Path has a market capitalization of approximately $5.06 million, reflecting its size within the biotechnology industry.
Moreover, the company's performance has been notably volatile, with a striking 69.11% return over the last week, yet it has experienced a substantial 89.85% decline over the past year. This contrast highlights the high-risk, high-reward nature that often characterizes the biotech sector.
Two InvestingPro Tips that stand out for Bio-Path include the company's significant return over the last month of 23.75%, suggesting a recent uptick in investor confidence, perhaps in anticipation of developments such as the private placement.
On the flip side, analysts express concerns, noting that the company suffers from weak gross profit margins and is not expected to be profitable this year. These insights may be particularly relevant for investors considering the current offering and evaluating Bio-Path's long-term potential.
For those seeking a deeper dive into Bio-Path's financials and future prospects, InvestingPro offers a comprehensive suite of additional tips. There are 11 more tips available on the InvestingPro platform, which could provide valuable context for the company's strategic moves and market positioning. Interested readers can unlock these insights and more by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
The company's recent performance and strategic initiatives, coupled with the detailed analysis available through InvestingPro, offer a rich tapestry of data for investors to consider as they assess Bio-Path's place in their portfolios.
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